Alarm.com HoldingsALRM -0.07%87 Median PS Value is $87.22 as of Jun. 25, 2026, which is 12726% above its 10-year median of 0.68. GuruFocus rates ALRM with a GF Score™ of 87/100 and a GF Value™ of $64.87 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,066 Software companies, Alarm.com Holdings ranks better than 73.83% on this metric.
This valuation method assumes that the stock valuation will revert to its historical (10-Year) median in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
The historical rank and industry rank for Alarm.com Holdings's Median PS Value or its related term are showing as below:
ALRM'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.5 Med: 0.68 Max: 0.74
Current: 0.51
During the past 13 years, the highest Price to Median PS Value of Alarm.com Holdings was 0.74. The lowest was 0.50. And the median was 0.68.
ALRM's Price-to-Median-PS-Value is ranked better than 73.83% of 1066
companies
in the Software industry
Industry Median: 0.81
vs ALRM: 0.51
Alarm.com Holdings (NAS:ALRM) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Alarm.com Holdings's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
44.44
/
87.22
=
0.51
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alarm.com Holdings Median PS Value Related Terms
Alarm.com Holdings Median PS Value Historical Data
* Premium members only.
The historical data trend for Alarm.com Holdings's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALRM vs GRND, VERX, PLUS: Median PS Value Comparison
For the Software - Application subindustry, Alarm.com Holdings's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alarm.com Holdings Price-to-Median-PS-Value vs Software Industry
For the Software industry and Technology sector, Alarm.com Holdings's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Alarm.com Holdings's Price-to-Median-PS-Value falls into.
10-Year Median PS Ratio is 4.8647.
Alarm.com Holdings's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $17.929.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Alarm.com Holdings (ALRM) has a Median PS Value of $87.22 as of Jun. 25, 2026. Median price-sales value is the stock value based on a company's 10-year median price-sales ratio, View historical data on Alarm.com Holdings and its competitors. This is 12726% above median its historical median of 0.68. Over the past decade, Alarm.com Holdings' Median PS Value has ranged from 0.50 to 0.74. According to the industry distribution chart, Alarm.com Holdings ranks #279 out of 1066 companies in the Software industry, placing it in the top 26.2%.
Is Alarm.com Holdings' Median PS Value too high?
Alarm.com Holdings' current Median PS Value of $87.22 is 12726% above median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.50 to a high of 0.74. The Software industry median Median PS Value is 0.81. Alarm.com Holdings' value of $87.22 is 10667.9% above this industry median. Based on the distribution chart, Alarm.com Holdings ranks #279 out of 1066 companies in the Software industry, which is above the industry midpoint. Overall, Alarm.com Holdings has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Alarm.com Holdings' Median PS Value compare to GRND and VERX?
According to the Software industry distribution chart, Alarm.com Holdings ranks #279 out of 1066 companies for Median PS Value. This puts Alarm.com Holdings in the upper half of its industry. The industry median Median PS Value is 0.81. Alarm.com Holdings' value of $87.22 is 10667.9% above this benchmark. Historically, Alarm.com Holdings' own Median PS Value has ranged from 0.50 to 0.74 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 0.81, Alarm.com Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Median PS Value for a Software company?
The median Median PS Value among Software companies is 0.81, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Median PS Value significantly above this median, while those in the bottom quartile fall well below. However, Median PS Value should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alarm.com Holdings's current Median PS Value of $87.22 is 10667.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Median PS Value mean?
A high Median PS Value can signal that a stock is expensive relative to its fundamentals. Median price-sales value is the stock value based on a company's 10-year median price-sales ratio, View historical data on Alarm.com Holdings and its competitors. For the Software industry, the median Median PS Value is 0.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alarm.com Holdings's current Median PS Value is $87.22, which is 12726% above median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alarm.com Holdings stock overvalued right now?
Based on GuruFocus' analysis, Alarm.com Holdings (ALRM) is currently considered Significantly Undervalued. The stock's GF Value™ is $64.87, compared to a current price of $44.44 — trading 31.5% below its estimated fair value. The current Median PS Value is $87.22, which is 12726% above median its 10-year median of 0.68 and 10667.9% above the Software industry median of 0.81. Alarm.com Holdings' overall GF Score™ is 87/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Median PS Value calculated?
Median PS Value is calculated from a company's financial statements. For Alarm.com Holdings (ALRM), the current Median PS Value is $87.22 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alarm.com Holdings (ALRM) Overvalued in 2026?
Based on GuruFocus' analysis, Alarm.com Holdings stock appears to be undervalued.
The current stock price of $44.44 is trading 31.5% below its estimated GF Value™ of $64.87.
GuruFocus considers Alarm.com Holdings to be Significantly Undervalued.
Key valuation signals for ALRM:
Median PS Value: $87.22 (12726% above median its 10-year median of 0.68)
GF Value™: $64.87 vs. price of $44.44 (31.5% below fair value)
Industry Position: 10667.9% above the Software median (#279 of 1066)
No single metric tells the full story. See the ALRM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alarm.com Holdings Inc has a cloud-based platform that offers an expansive suite of IoT solutions addressing world-wide opportunities in the residential, multi-family, small business and enterprise commercial markets. It has two reportable segments: Alarm.com & Other. The Alarm.com segment represents the cloud-based Software platforms for intelligently connected property & related solutions. The other segment is focused on researching, developing & offering residential & commercial automation solutions & energy management products & services in adjacent markets. The majority of revenue is from the Alarm.com segment. The platform allows home & business owners to secure their properties and automate & control an array of connected device.
87GF Score
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